CREDIT Suisse has responded to fears about its weak capital position by
announcing a raft of measures to raise Sfr15.3bn (£10bn) by the end of the
year.

The surprise move, which includes a Sfr3.8bn convertible bond issue, the sale of its private equity division and holding back cash bonuses, comes after the Swiss central bank publicly criticised Credit Suisse for not carrying enough of a capital buffer, given the risks presented by the eurozone debt crisis.

Brandy Dougan, chief executive, said he hoped the measures would “take any question of the strength of our capitalisation off the table.” Credit Suisse shares rose 3.9pc in early trading to Sfr17.82.

Last month, when the Swiss National Bank released its damning financial stability report, Credit Suisse shares tumbled by more than 10pc. Mr Dougan initially argued that the central bank was not its regulator and that it comfortably met the capital requirements policed by watchdog FINMA. However, he was forced into a climb down after coming under fire from the SNB and Moody’s, the credit ratings agency, downgrade Credit Suisse’s long-term debt.

Mr Dougan said that although the bank didn’t agree with the “style and substance” of the SNB report, it was more “prudent” to act decisively to bolster capital. The SNB welcomed the bank’s move, saying the measures would “substantially increase” Credit Suisse’s “resilience” .

The bank has already announced it will sell its 7pc stake in fund manager Aberdeen Asset Management, and will now also look at selling its real estate and private equity division, as well as asking employees to exchange future cash bonuses for shares.